SB1117

SECTION 1. The legislature finds that under existing law, individuals under the age of fifteen are able to legally ride high-speed electric bicycles, which has led to numerous safety and other issues. Under existing statute, electric bicycles are defined as devices capable of speeds of up to twenty miles per hour, even though modern federal definitions allow for speeds of up to twenty-eight miles per hour, and the vast majority of electric bicycles on the market today are capable of reaching those speeds. This means a five-year-old is legally able to ride a new electric bicycle and law enforcement can do little about it.

The legislature further finds that due to increasingly expensive fossil fuels and a lack of cheaper transit options, Hawaii residents already pay among the highest costs to commute in the country. A 2020 analysis studied all of the direct and indirect costs of car ownership and use in Hawaii and found that local taxpaying families pay about $24,400 per year, but could reduce that cost significantly by switching from three cars per family to two, or two cars to one, and replacing short trips for those family members who are able with electric bicycles or similar mobility devices.

The legislature also finds that the current electric bicycle and moped rebate program, even with minimal promotion and low subsidy, has helped almost three hundred Hawaii families access electric bikes since its inception. However, its reach and effectiveness has been limited by complicated restrictions and a lower rebate than other successful programs.

In 2022, Denver's electric bike rebate program, which provided families with up to a $1,200 rebate, led to considerable cost savings for Denver families, and replaced many trips by car with trips by electric bicycle which helped reduce vehicular traffic on crowded roads by over one hundred thousand vehicular miles weekly. Ninety-six per cent of respondents said the availability of the rebate made the difference when deciding to buy an electric bike.

The legislature further finds that updates to the law regarding the use of helmets and operation of electric bicycles are necessary to enhance road safety for the entire community, and particularly for youths.

Accordingly, the purpose of this Act is to:

(1) Prohibit individuals under the age of fifteen from riding electric bicycles;

(2) Help reduce the cost of transportation and traffic on Hawaii's roads by addressing barriers in the existing electric bicycle and moped rebate program to enable the purchase and use of adaptive electric bicycles for those with disabilities and expand eligibility and rebates for electric bicycles to mirror similar proven successful programs more closely;

(3) Clarify the source of funding for the electric mobility rebate program;

(4) Allow for registration of class 3 electric bicycles with wheels smaller than twenty inches that are intended for adult use;

(5) Change the age for helmet requirements statewide from sixteen to eighteen years of age;

(6) Allow electric bicycles on public sidewalks, subject to certain conditions;

(7) Authorize rather than require that mopeds use bicycle lanes;

(8) Change the term "motor scooter" to "motor-driven vehicle"; and

(9) Require electric bicycle operators on public streets to follow certain safe riding behavior.

SECTION 2. Section 196-2, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:

""Adaptive electric bicycle" means any bicycle that is modified to fit the needs of an individual rider who is unable to use a standard electric bicycle.

"Electric bicycle" means a bicycle equipped with fully operable pedals, a saddle or seat for the rider, and an electric motor not to exceed seven hundred and fifty watts that meets the requirements of one of the following three classes:

(1) Class 1 electric bicycle, which is an electric bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of twenty miles per hour;

(2) Class 2 electric bicycle, which is an electric bicycle equipped with a motor that may be used exclusively to propel the bicycle, and that is not capable of providing assistance when the bicycle reaches the speed of twenty miles per hour; or

(3) Class 3 electric bicycle, which is an electric bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of twenty-eight miles per hour.

"Electric micro-mobility device" means any ground transportation device, such as a standing scooter or similar device, that is powered either exclusively by electricity from a battery charged from an external source, or by electricity from a battery charged from an external source in addition to human power, which is designed to transport a single person, with a range not less than fifteen miles and maximum speed of twenty-eight miles per hour, on which a person may reasonably commute to and from regular destinations."

SECTION 3. Section 198-7.8, Hawaii Revised Statutes, is amended to read as follows:

"[[]§196-7.8[]] Electric [~~bicycle and electric moped~~] mobility rebate program; third-party administrator; special fund. (a) The department of transportation shall administer a rebate program that incentivizes the purchase of new electric [~~bicycles and new electric mopeds~~] mobility devices and may contract with a third-party administrator pursuant to subsection [~~(i)~~] (k) to operate and manage the rebate program.

(b) Each eligible purchase of a new electric bicycle [~~or new~~], electric moped, adaptive electric bicycle, or electric micro-mobility device shall receive a rebate of [~~either twenty per cent of the retail cost or $500, whichever amount is lower;~~] either fifty per cent of the retail cost or $750; whichever is lower; provided that no individual shall receive more than [~~$500~~] $750 in total rebates each fiscal year[.] unless also qualifying for the additional assistance rebate pursuant to subsection (i), in which case no individual shall receive more than $1,500 in total rebates each fiscal year.

(c) The department of transportation shall not issue more than [~~$700,000~~] $2,000,000 in total rebates under this section each fiscal year; provided that the electric [~~bicycle and electric moped~~] mobility subaccount within the highway development special fund pursuant to section 264-122(d) contains sufficient funds to pay the rebates. The department of transportation shall not be liable to pay any refund if sufficient funds are unavailable. The department of transportation shall allow valid claims filed by eligible applicants for whom sufficient funds may not be immediately available to receive a rebate as funds may be available in a subsequent year.

(d) The department of transportation shall:

(1) Prepare any forms that may be necessary for an applicant to claim a rebate pursuant to this section; and

(2) Require each applicant to furnish reasonable information to ascertain the validity of the claim, including but not limited to [~~the signature of the buyer and individual responsible for the sale on behalf of a retail store at the time of sale,~~] a copy of valid government issued photo identification of the buyer at the time of the sale, receipt of purchase, name and address of the retail store, verification of eligibility, and any other documentation necessary to demonstrate the legitimate purchase of a new electric [~~bicycle or new electric moped.~~] bicycle, adaptive electric bicycle, electric moped, or electric mobility device.

(e) This section shall apply to new:

(1) Electric bicycles [~~capable of speeds of no more than twenty-eight miles per hour; and~~];

(2) Electric mopeds[,];

(3) Adaptive electric bicycles; and

(4) Electric micro-mobility devices,

purchased at a retail store after July 1, 2022.

(f) Applicants shall submit an application to the department of transportation within twelve months of the date of purchase to claim a rebate from the electric [~~bicycle and electric moped~~] mobility rebate program. Failure to apply within twelve months of the date of purchase shall constitute a waiver of the right to claim the rebate.

(g) Nothing in this section shall alter taxes due on the original purchase. Any rebate received pursuant to this section shall not be considered income for the purposes of state or county taxes.

(h) In administering the electric mobility rebate program, the department of transportation shall provide rebates to persons who are residents of the State and fifteen years or older, who purchase a new qualifying electric bicycle, electric moped, adaptive electric bicycle, or electric micro-mobility device.

[~~(h)~~] (i) In administering the electric [~~bicycle and electric moped~~] mobility rebate program, the department of transportation shall provide [~~rebates~~] an assistance rebate in addition to the rebate in subsection (b). The additional assistance rebate shall be $750 or the full retail amount, whichever amount is lower, to persons [~~eighteen~~] fifteen years or older who:

(1) Are eligible for:

(A) The Supplemental Nutrition Assistance Program;

(B) The free and reduced price lunch program;

(D) Similar low-income assistance programs identified by the department of transportation;

(2) Do not own a registered motor vehicle with four or more wheels, as demonstrated by an affidavit signed by the applicant at the time of sale of the new electric bicycle [or], electric moped, adaptive electric bicycle, or electric micro-mobility device, which may be audited by the department of transportation; or

(3) Are enrolled in school, community college, or university;

provided that parental or guardian permission shall be required if a person is under the age of eighteen.

[~~(i)~~] (j) The department of transportation may contract with a third-party administrator to operate and manage the electric [~~bicycle and electric moped~~] mobility rebate program. The third-party administrator shall not be deemed to be a "governmental body" as defined in section 103D-104; provided that all moneys transferred to the third-party administrator shall have been appropriated by the legislature or shall be from moneys provided by the federal government or private funding sources. The third-party administrator [~~shall not expend more than ten per cent of the amounts appropriated for the rebate program, or any other reasonable percentage determined by the department of transportation, for~~] may provide administration, promotion, and reporting of the electric [~~bicycle and electric moped~~] mobility rebate program.

(k) The department of transportation may contract with a third-party administrator to administer the electric mobility rebate program; provided that the third-party administrator may pay rebates to each rebate applicant from moneys transferred pursuant to subsection (j) from the electric mobility subaccount within the highway development special fund.

(l) The department of transportation shall provide an annual report to the legislature no later than twenty days prior to the convening of each regular session that shall detail the rebates provided by zip code, amount received, and type of rebate."

SECTION 4. Section 249-14, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) An owner of a bicycle or a class 3 electric bicycle as defined in section 196-2, intended for adult use, having two tandem wheels that are less than twenty inches in diameter is not required to register that bicycle, but may do so to facilitate the return of recovered stolen bicycles by payment of the registration fee. The fee collected shall not be refunded or prorated. Upon receipt of the fee, the director of finance shall number and register each bicycle for which the fee is paid, in the owner's name, and furnish the owner with a metallic tag or decal for each bicycle, which shall be attached to the bicycle. The decal shall be affixed to a bicycle on the upright post attached to the sprocket facing in the forward direction. Upon initial registration by an owner or transferee, the director of finance shall require proof of ownership and require the owner to furnish verification of the serial number and description contained in the proof of ownership and application for registration. The metallic tags or decals shall be in a form as the director of finance shall from time to time prescribe. It shall be the duty of the director of finance of each county to purchase a sufficient number of these tags or decals."

SECTION 5. Section 264-122, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) There is established within the highway development special fund an electric [~~bicycle and electric moped~~] mobility subaccount. The department shall expend moneys in the subaccount for the purposes of funding the electric [~~bicycle and electric moped~~] mobility rebate program established pursuant to section 196-7.8."

SECTION 6. Section 291C-139, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) No person under fifteen years of age shall operate an electric foot scooter on a highway, street, roadway, or any other public property in the State. No person under [~~sixteen~~] eighteen years of age shall operate an electric foot scooter unless the person wears a safety helmet securely fastened with a chin strap. The safety helmet shall meet the specifications of and requirements for a bicycle helmet as set out in section 291C-150."

SECTION 7. Section 291C-143.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§291C-143.5[] ~~Low-speed electric~~] Electric bicycles; operator age[.]; operation. (a) No person under the age of fifteen shall operate [~~a low-speed~~] an electric bicycle as defined [~~under title 15 United States Code section 2085.~~] in section 196-2.

(b) All electric bicycles shall be operated only with all wheels on the ground at all times, facing forward, and with the operator seated with one leg on each side of the seat; provided that it shall not be a violation of this subsection if the wheels lose contact with the ground briefly due to the condition of the road surface or other circumstances beyond the control of the operator.

(c) It shall be unlawful for any person to operate an electric bicycle in an unsafe manner or engage in exhibition driving on any public street, alley, or other public right of way provided that this subsection shall not apply to a person engaging in exhibition riding as part of a parade, tournament, or other activity permitted by the county.

(d) The following actions while operating an electric bicycle shall be prohibited:

(1) Standing or kneeling on any seat, riding on any handlebars, or engaging in any other non-standard riding position;

(2) Performing a maneuver where one or more wheels are intentionally lifted from the ground; and

(3) Engaging in any other maneuver that endangers the operator or any person."

SECTION 8. Section 291C-145, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

"(g) [No] A person may ride an electric bicycle on public sidewalks; provided that no person shall ride [a] an electric bicycle [~~equipped with a motor~~] on any sidewalk located within a business district; provided further that the electric bicycle shall not exceed a speed of ten miles per hour; provided further that the rider shall use safe yielding behavior. The counties may, by ordinance, post bicycle lanes and bicycle paths to prevent persons riding a bicycle equipped with a motor from using them."

SECTION 9. Section 291C-150, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) No person under [~~sixteen~~] eighteen years of age shall operate a bicycle upon a street, bikeway, or any other public property unless that person is wearing a properly fitted and fastened bicycle helmet that has been tested by a nationally recognized agency such as the National Highway Traffic Safety Administration, the National Safety Council, or the Children's Safety Network, and is designed to fit the user and protect against head trauma. This requirement also applies to a person who rides upon a bicycle while in a restraining seat that is attached to the bicycle or who rides in a trailer towed by the bicycle.

(b) A person who provides bicycles for hire shall not rent a bicycle to any person unless every person who is under age [~~sixteen~~] eighteen is wearing a bicycle helmet, as required in subsection (a), while operating the rented bicycle, occupying a restraining seat that is attached to the rented bicycle, or riding in a trailer towed by the rented bicycle."

SECTION 10. Section 291C-197, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Wherever bicycle lanes are provided on the roadway, moped drivers [~~shall~~] may use [~~such~~] the bicycle lanes."

SECTION 11. Sections 249-1, 249-9.2, 286-2, 286-81, 286‑81.5, 286-102.6, 286-108, 286-109, 286-110, 291-11, 291-22, 291-25, 291-31, 291-31.5, 219C-1, 291C-206, 431:10C-304, 431:10C-305, 431:10C-408, 431-19G-101, 431:10G-102, 431:10G-103, 431:10G-104, 431:10G-105, 431:10G-106, 431:10G-107, 431:10G-108, 431:10G-201, 431:10G-202, 431:10G-206, 431:10G-301, 437-7, 437B‑1, 481I-2, and 604A-2, Hawaii Revised Statutes, are amended by substituting the term "motor-driven cycle" or similar term, where the term "motor scooter", or similar term, appears, as the context requires.

SECTION 12. There is appropriated out of the state highway fund the sum of $700,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the highway development special fund electric mobility subaccount.

SECTION 13. There is appropriated out of the highway development special fund electric mobility subaccount the sum of $700,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the operations of the electric mobility rebate program including the payment of rebates and costs of the administrator; provided that the funds appropriated shall not lapse at the end of the fiscal year for which it was appropriated; provided further that any unencumbered funds remaining shall lapse on June 30, 2028.

The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

SECTION 14. There is appropriated out of the state highway fund the sum of $700,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the highway development special fund electric mobility subaccount.

SECTION 15. There is appropriated out of the highway development special fund electric mobility subaccount the sum of $700,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the operations of the electric mobility rebate program, including the payment of rebates and costs of the administrator; provided that the funds appropriated shall not lapse at the end of the fiscal year for which it was appropriated; provided further that any unencumbered funds remaining shall lapse on June 30, 2028.

The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

SECTION 16. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 17. This Act shall take effect upon its approval; provided that sections 12, 13, 14, and 15 shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1117
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII